Is Clarksville, Tennessee Good for Airbnb Investment?

To start an Airbnb in Clarksville, Tennessee, begin by researching local regulations as Clarksville requires short-term rental operators to obtain a business license from the City Clerk's office and comply with zoning ordinances that may restrict rentals in certain residential areas. Contact the Clarksville Planning Department at 931-645-7444 to verify your property's zoning allows short-term rentals and obtain necessary permits, which typically cost around $50-100 annually. Find a suitable property by searching areas near Austin Peay State University, Fort Campbell, or downtown Clarksville, with average property prices ranging from $150,000-300,000, ensuring the property meets safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers. Furnish the space with quality furniture, linens, kitchen essentials, and amenities like WiFi and cable TV, budgeting approximately $5,000-15,000 for a complete setup. Create your Airbnb listing with professional photos, competitive pricing (typically $75-150 per night in Clarksville), and detailed descriptions highlighting proximity to Fort Campbell and local attractions. Register for Tennessee state sales tax through the Department of Revenue and collect the required 9.25% state and local taxes from guests. Manage your property by maintaining cleanliness standards, responding promptly to guest inquiries, coordinating check-ins/check-outs, and ensuring compliance with Clarksville's noise ordinances and occupancy limits, while considering hiring local cleaning services like Molly Maid or property management companies if needed.

To identify profitable short-term rental properties in Clarksville, Tennessee, focus on locations within 10-15 minutes of Fort Campbell military base, downtown Clarksville's entertainment district, and Austin Peay State University campus, as these areas generate consistent demand from military personnel, students, and visitors. Target 2-4 bedroom single-family homes or townhomes built after 1990 with modern amenities, full kitchens, dedicated parking, and outdoor spaces, as these features command premium rates of $80-150 per night in the Clarksville market. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against comparable properties, aiming for properties under $200,000 that can generate 15-25% annual returns, while analyzing seasonal demand patterns driven by military PCS moves and university events. Research competition by monitoring active Airbnb and VRBO listings within a 3-mile radius, identifying gaps in amenities or underserved neighborhoods, and utilize tools like Rabbu, STRAnalytics, and local MLS data through Realtor.com to assess market saturation and occupancy rates. Leverage Clarksville-specific resources including the Montgomery County planning department for zoning compliance, local property management companies like Red Door Realty for market insights, and connect with the Clarksville Association of Realtors to identify emerging neighborhoods near the planned Interstate 24 improvements and downtown revitalization projects that could drive future appreciation.

To obtain an Airbnb/STR permit in Clarksville, Tennessee, you must first contact the Clarksville-Montgomery County Planning Department at 166 Cunningham Lane to determine zoning compliance, as short-term rentals are typically only permitted in certain residential zones with conditional use permits. Submit an application to the Planning Department including a completed conditional use permit application, property deed, site plan showing parking and access, proof of property insurance with minimum $1 million liability coverage, and a $350 application fee. You'll also need to register with the Tennessee Department of Revenue for state sales tax collection and obtain a Montgomery County business license from the County Clerk's office for approximately $15-25. The planning review process typically takes 30-45 days and may require a public hearing before the Board of Zoning Appeals. Once approved, you must comply with Clarksville's specific requirements including maximum occupancy limits based on bedrooms, adequate off-street parking (typically 2 spaces minimum), 24/7 local contact person, and adherence to noise ordinances. Annual renewal is required with the planning department, and you must maintain current business licenses and remit applicable local hotel/motel taxes of 5% to Montgomery County.

Short-term rentals (STRs) are legal in Clarksville, Tennessee, but operate under specific regulations established by the city. As of 2023, Clarksville requires STR operators to obtain a business license and comply with zoning restrictions that primarily allow STRs in commercial and mixed-use districts, while limiting them in residential neighborhoods. The city has implemented occupancy limits, parking requirements, and noise ordinances specifically for STRs, and requires operators to maintain liability insurance and provide emergency contact information. Properties must pass safety inspections and meet building code requirements. Recent changes in 2022-2023 included stricter enforcement mechanisms and increased penalties for violations, particularly regarding noise complaints and overcrowding. The city has also established a complaint process for neighbors and requires STR operators to register with the city annually, with fees ranging from $100-300 depending on the property type and location.

The best Airbnb investment areas in Clarksville, Tennessee include Downtown Clarksville near the Cumberland River, which attracts tourists visiting the historic district, restaurants, and riverfront activities, plus business travelers to nearby Fort Campbell. The Wilma Rudolph Boulevard corridor offers excellent access to Austin Peay State University, making it ideal for visiting families, prospective students, and academic conferences. Areas near Exit 4 and Exit 8 off Interstate 24 provide convenient access for travelers heading to Nashville (45 minutes away) while offering lower accommodation costs than the capital city. The Historic Downtown district around Franklin Street appeals to visitors interested in Civil War history, antique shopping, and local festivals like Rivers and Spires Festival. Neighborhoods near Liberty Park and McGregor Park attract families visiting Fort Campbell military personnel and outdoor enthusiasts using the city's extensive trail system. The Governors Square area provides proximity to shopping and dining while maintaining easy highway access for business travelers working with the numerous logistics and manufacturing companies that have established operations in Clarksville due to its strategic location between Nashville and Kentucky.

In Clarksville, Tennessee, Airbnb hosts are subject to both state and local lodging taxes that must be collected from guests and remitted to appropriate authorities. The Tennessee state sales tax rate of 7% applies to short-term rental accommodations, along with the state hotel occupancy tax of 3%, bringing the combined state obligation to 10%. Montgomery County, where Clarksville is located, imposes an additional local hotel/motel tax of approximately 5%, making the total tax burden around 15% on gross rental receipts. The City of Clarksville may impose its own occupancy tax of 1-3% depending on current municipal ordinances. These taxes are typically collected by Airbnb directly from guests when enabled through their platform's tax collection service, which began around 2018-2019 for Tennessee, and the company remits payments monthly to the Tennessee Department of Revenue and applicable local authorities. Hosts who collect taxes independently must register with the Tennessee Department of Revenue, obtain proper permits from Montgomery County and Clarksville, file monthly returns, and remit payments by the 20th of the following month. Exemptions generally apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than transient accommodations, and certain government or non-profit related bookings may qualify for exemptions with proper documentation.

The total cost to start an Airbnb in Clarksville, Tennessee is approximately $215,000-$275,000. Property purchase costs around $180,000-$220,000 based on median home prices in the area as of 2023-2024. Furnishing a 2-3 bedroom property typically runs $15,000-$25,000 including beds, sofas, dining sets, appliances, linens, and decor. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies total $2,000-$3,500. Permits and fees including business license, short-term rental permit, and inspection fees range from $500-$1,200 depending on local requirements. Insurance for short-term rentals costs $1,500-$2,500 annually, with the first year paid upfront. Utilities setup and deposits for electricity, water, gas, internet, and cable run $500-$800. First six months operating costs including utilities ($900-$1,200), cleaning services ($1,800-$2,400), maintenance and repairs ($1,000-$1,500), property management software ($300-$600), and marketing expenses ($500-$800) total approximately $4,500-$6,500. Additional considerations include potential HOA fees, property taxes, and a cash reserve for unexpected expenses.

Airbnb properties in Clarksville, Tennessee show moderate profitability with average daily rates ranging from $75-120 depending on property size and location, generating monthly revenues of $1,800-3,200 for well-managed properties with 60-70% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($30-50 per turnover), property management (10-20%), utilities ($150-250/month), insurance ($100-200/month), and maintenance costs, resulting in net profit margins of 25-35% for successful operators. Properties near Fort Campbell and Austin Peay State University command premium rates, with a 3-bedroom home near the base generating approximately $2,800 monthly revenue against $1,400 in expenses for a 50% profit margin in 2023. Success factors include strategic location within 15 minutes of major attractions, professional photography, competitive pricing 10-15% below Nashville rates, consistent 4.8+ star ratings, and offering military-friendly amenities given the area's proximity to Fort Campbell. The market benefits from steady demand from military families, university visitors, and tourists exploring the Cumberland River region, though competition has increased 25% since 2022 as more investors recognize Clarksville's potential as an affordable alternative to Nashville's saturated market.

Airbnb investments in Clarksville, Tennessee typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, driven by the city's proximity to Fort Campbell military base and steady demand from military personnel, contractors, and visitors. Properties near downtown Clarksville or within 15 minutes of the base command premium rates of $85-120 per night, with occupancy rates averaging 65-75% annually. Initial profitability usually occurs within 8-14 months for well-positioned properties, with investors like RedAwning and Vacasa reporting strong performance in the market since 2019. The median property acquisition cost of $180,000-250,000 combined with renovation budgets of $15,000-25,000 allows investors to achieve positive cash flow within the first year, particularly for 2-3 bedroom homes that cater to military families and corporate travelers visiting Austin Peay State University or local manufacturing facilities.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors in Clarksville, Tennessee. Local real estate agents like Keller Williams Clarksville and RE/MAX Elite have agents experienced in investment properties and Airbnb regulations in the area. BiggerPockets offers educational resources and networking for Clarksville investors, while Mashvisor provides market analysis and property recommendations for the Tennessee market. AirDNA delivers short-term rental data and market insights specific to Clarksville and surrounding Montgomery County. Local property management companies like Nashville Airbnb Management and Tennessee Short Term Rentals extend services to the Clarksville market. National services including Awning, RedAwning, and Vacasa offer property management and investment guidance for Clarksville properties. Real estate investment firms like HomeVestors and We Buy Ugly Houses occasionally work with investors seeking Airbnb conversion properties in the area. Local mortgage brokers at First National Bank of Tennessee and Pinnacle Financial Partners understand investment property financing for short-term rentals in Clarksville's market.